In this step, you will record any losses incurred by your Fund in years prior to your Migration Date. Recording past losses ensures values are correctly entered in your next tax return and any eligible losses are claimed against taxes owed.
To enter prior year losses, go to https://app.mclowd.com/prior-years-losses or click the Prior Years Losses button on the Fund Setup Menu.
Enter carried forward tax losses (operating losses) for each year in the Tax Losses Carried Forward column. Mclowd will display the Total, which should match the value shown at ‘’U’’ in your last tax return (‘’Tax Losses Carried Forward to Later Income Years’’).
Enter capital losses carried forward for each prior year. These should be split into losses from collectables (bad debts) and losses from other assets. The Total displayed by Mclowd in the From Other Assets column should match the total shown on your tax return at column ‘’V’’ (“Net Capital Losses Carried Forward to Later Income Years’’).
The correct values should be shown on financial statements for each of the past years since inception of your Fund. If in doubt, consult your accountant or a Mclowd technical support assistant.
When you are satisfied that all past year losses have been correctly entered, click SAVE PRIOR YEAR LOSSES to save values, then return to the Fund Setup Menu.